The Dow Jones industrial average remained the leading key index in late-afternoon trading Wednesday, courtesy of the biggest single-point gain by IBM (IBM) in years.

XAutoplay: On | OffThe 30-stock Dow industrials rose nearly 0.7%, better than a 0.1% lift for both the Nasdaq composite and the S&P 500. However, small caps also signaled that institutional investors are still seeking to accumulate stocks.

Small caps also are outperforming. The Russell 2000 is up nearly 0.7%.

IBM gapped up more than 14 points, or nearly 10%, and climbed back above the critical 200-day moving average for the first time since mid-April. That move, following a halting of significant revenue declines, was a big step in Big Blue possibly forming the right side of a new base.

IBM, at 161.07, is now slightly less than 12% below a 52-week high of 182.79.

Watch to see if IBM’s Relative Price Strength Rating, currently a horrible 18 as seen in IBD Stock Checkup, improves quickly by the end of the week.

Meanwhile, Apple (AAPL) caught its breath, falling just 0.2% to 160.18 in bone-dry turnover. The leading megacap tech, up 38% since Jan. 1 and holding on to a superb gain since it broke out of a perfect cup with handle at 118.12 on Jan. 6-9.

Apple, which reports on Nov. 2, also appears to be forming a new shallow base that’s next to an 11-week flat base pattern. On Aug. 2, Apple rushed past the flat-base buy point of 156.75 but did not gain much ground. Intrepid investors, however, could have bought shares as the iPhone giant returned back above the proper entry earlier this month.

Top industry groups for the day included railroads, wood products, home furnishings retailing, truck transport and leisure products. Leading stocks in these industries include RH (RH), CSX (CSX) and Old Dominion Freight (ODFL).

The Dow transports rallied almost 1%.

IBD’s TAKE:The IBD 50 has showcased companies that are the new powerhouses of the U.S. and global economy. Institutional investors seek to find firms with exceptional earnings and sales growth, an outstanding product or service, and the highest pretax margins and return on equity in their industries. As seen in a graph on page B4 of the IBD Weekly newspaper edition, the price-weighted IBD 50 shows a total return of 750% from April 11, 2003 to Dec. 31, 2016, equal to an average annual gain of 16.9%. The S&P 500 has risen 242% over the same period.

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